The effects of real exchange rate on trade balance and domestic output: a case of Malaysia

The main objective of this study is to determine the effects of real exchange rate changes on the real Malaysian trade balance and the domestic output during the pegged exchange rate regime, 1977:1{1998:2, using quarterly data. The cointegration results suggest that a real ringgit exchange rate...

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Main Author:	Yusoff, Mohammed
Format:	Article
Language:	English
Published:	Taylor & Francis 2010
Subjects:	HF1014 Balance of trade HG3810 Foreign exchange
Online Access:	http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf

id	iium-4328
recordtype	eprints
spelling	iium-43282012-04-09T01:00:06Z http://irep.iium.edu.my/4328/ The effects of real exchange rate on trade balance and domestic output: a case of Malaysia Yusoff, Mohammed HF1014 Balance of trade HG3810 Foreign exchange The main objective of this study is to determine the effects of real exchange rate changes on the real Malaysian trade balance and the domestic output during the pegged exchange rate regime, 1977:1{1998:2, using quarterly data. The cointegration results suggest that a real ringgit exchange rate depreciation improves the Malaysian balance of trade in the long run.The impulse response analysis suggests that the effects of a depreciation of ringgit on the trade balance and domestic output are quite similar. A devaluation will initially improve the trade balance and domestic output, after which the trade balance starts to deteriorate and then the recession sets in, but subsequently both the trade balance and domestic output improve. Taylor & Francis 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf Yusoff, Mohammed (2010) The effects of real exchange rate on trade balance and domestic output: a case of Malaysia. The International Trade Journal, 24 (2). 209 -226. ISSN print/1521-0545 online. http://www.informaworld.com/smpp/title~content=t713772442 http://dx.doi.org/10.1080/08853901003652377
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF1014 Balance of trade HG3810 Foreign exchange
spellingShingle	HF1014 Balance of trade HG3810 Foreign exchange Yusoff, Mohammed The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
description	The main objective of this study is to determine the effects of real exchange rate changes on the real Malaysian trade balance and the domestic output during the pegged exchange rate regime, 1977:1{1998:2, using quarterly data. The cointegration results suggest that a real ringgit exchange rate depreciation improves the Malaysian balance of trade in the long run.The impulse response analysis suggests that the effects of a depreciation of ringgit on the trade balance and domestic output are quite similar. A devaluation will initially improve the trade balance and domestic output, after which the trade balance starts to deteriorate and then the recession sets in, but subsequently both the trade balance and domestic output improve.
format	Article
author	Yusoff, Mohammed
author_facet	Yusoff, Mohammed
author_sort	Yusoff, Mohammed
title	The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
title_short	The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
title_full	The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
title_fullStr	The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
title_full_unstemmed	The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
title_sort	effects of real exchange rate on trade balance and domestic output: a case of malaysia
publisher	Taylor & Francis
publishDate	2010
url	http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf
first_indexed	2023-09-18T20:12:30Z
last_indexed	2023-09-18T20:12:30Z
_version_	1777407571481591808

The effects of real exchange rate on trade balance and domestic output: a case of Malaysia

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